Chinese wind owners face cash crunch as state subsidy stops

Overcapacity and a crackdown on project approvals are hurting China's industry

China’s wind farm owners have been waiting two years to receive a government subsidy for sending power to the grid.

The shortfall in income has contributed to a cash crunch at developers in the past year, which led some to delay payments to equipment companies.

China’s National Development and Reform Commission has paid a subsidy for wind power since 2006. However, in some provinces it has not made any payments since the third quarter of 2010.

The Ministry of Finance is implementing a new system for subsidy payments for renewable energy generated in 2012.

But the government still owes developers an estimated 1.4bn yuan ($224m) for the fourth quarter of 2010 and Log in to read complete article.

Become a Recharge subscriber!

Or try our free trial.

Order Subscription

Already a member?

Login